Hospitality outfit Dolphin Cove Limited experienced a 40 per cent dip in its profitability, from US$3.06 million (J$469.64 million) to US$1.83 million (J$282.78 million), as it saw fewer cruise arrivals at the Ocho Rios Port and passenger arrivals at the Sangster International Airport (SIA).

This was revealed in the company’s audited financial statements which showed that the company’s consolidated revenue declined 11 per cent from US$17.11 million to US$15.30 million (J$2.37 billion). Although there was no accompanying management discussion and analysis, Dolphin Cove had explained in its previous quarterly reports that it had been receiving fewer arrivals to its Ocho Rios location because of the closure of the Ocho Rios Port.

The Ocho Rios Port was closed in February 2024 after severe weather caused a cruise ship to repeatedly slam into Berth 2, the main pier, which left it with infrastructural damage. Cruise visitor arrivals were down one per cent in 2024 to 1,252,632 visitors. Cruise passengers made up 36 per cent of Dolphin Cove’s visitors in 2019 with that figure decreasing to 28 per cent in 2023.

Dolphin Cove was also impacted by Hurricane Beryl in July which forced it to close its parks for up to eight days. Sangster International had double digit declines in passenger movements between August to September with total passenger movements down three per cent in 2024 to 5.06 million passengers. SIA handles more than 70 per cent of air traffic into Jamaica and acts as the gateway to the country’s North Coast which contains most of the tourism related businesses.

Apart from the company experiencing a decline in business, it also had a US$136,036 loss on disposal of live assets which refers to the live animals that the company owns at its attractions. Although the company’s total operating expenses were down five per cent to US$9.86 million, the company’s consolidated operating profit declined 31 per cent from US$4.27 million to US$2.94 million.

With respect to Dolphin Cove’s fourth quarter (October to December), it recorded a 14 per cent dip in revenue from US$3.91 million to US$3.34 million. However, the company’s net loss improved from US$619,579 to US$506,453 during Q4 as it contained operational expenses during the period.

Dolphin Cove’s total assets marginally dipped to US$37.19 million with the company’s non-current assets at US$30.86 million, with US$26.26 million being property, plant and equipment. Its current assets were US$6.33 million with cash at US$6.33 million. Total liabilities and shareholder’s equity closed the period at US$6.45 million and US$30.74 million, respectively.

Dolphin Cove’s stock price closed Tuesday at $13.57 which leaves it down 27 per cent in 2025 with a market capitalisation of $5.33 billion. Dolphin Cove’s stock price has had volatile swings since February when it was first revealed that its intermediate parent company Controladora Dolphin, S.A. de C.V. (Dolphin Discovery) had entered a Concurso Mercantil process. The Concurso Mercantil process is a corporate restructuring and insolvency procedure under Mexican law that allows companies to better navigate their affairs with creditors.

Dolphin Cove’s stock price dove from $19.59 on February 17 to a low of $12.41 on February 27, with the company then hitting a 52-week low of $11.90 on February 28. However, the stock gradually climbed back to $19.30 on March 11 after Dolphin Cove chairman Stafford Burrowes reassured investors in a Jamaica Gleaner article about the safety of the company.

This rebound was relatively short lived as former Dolphin Discovery Group CEO Eduardo Albor Villanueva wrote to the JSE about Burrowes director role and made other allegations against the company’s independent directors. The stock price dove $16.48 on April 8 to $11.39 on April 28.

Dolphin Cove later affirmed in a release on the Jamaica Stock Exchange (JSE) that Burrowes remained a director due to an incorrect procedure being done by World of Dolphins Inc, the company’s direct parent company. Burrowes even signed off on the company’s 2024 audited financials.

The company stated that its 2024 annual report should be made available by Friday.

Mexican stand-off

As Dolphin Cove seeks to navigate the decline in arrivals, Steven Robert Strom, the sole independent director of Leisure Investments Holdings LLC, and Albor Villanueva appear to be in a stand-off for access to Dolphin Discovery Group’s records. This was detailed in a Bloomberg article, titled “Ex-Aquatic Park CEO Accused of Seizing HQ After Midnight” which was based on Strom’s court filing.

Albor responded in a recent Delaware court filing that stated, “On April 11, 2025, suddenly and without prior notice, Mr Wagstaff, his staff, a court clerk assigned to the First Commercial Judge of First Instance of the Judicial District of Cancún, accompanied by various municipal law enforcement officers, private security guards, locksmiths and several individuals claiming to be attorneys-in-fact, forcibly entered a building owned by Mr Albor in Cancún that is neither owned or leased by any of the Mexican Dolphin Group Entities, including without limitation, Controladora Dolphin. Rather, the building that was improperly occupied is leased to another non-debtor company.”

Strom was appointed the sole independent director of Leisure Investments Holdings LLC on March 18. Leisure Investments is the main holding company of all the companies in the Dolphin Group of companies. It is owned by TDC Leisure Holdings LLC, a Delaware company, whose majority owner is Albor Viilanueva who has a 42.5 per cent beneficial ownership interest through COSMO Investments LLC and AVRA Limitless LLC. John Olson owns 38.77 per cent of TDC Leisure Holdings, Mike Wood owns 12.13 per cent, Donna Brewer owns 4.12 per cent and Burrowes owns 2.45 per cent.

Strom’s appointment came after an 18-month period of forbearance and restructuring negotiations by Dolphin Discovery’s noteholders bore no fruit. The noteholders exercised their collateral rights and removed the board of directors and managers of Leisure Investments and Dolphin Discovery. Albor Villanueva’s officer-like powers as CEO over the Mexican subsidiaries was also terminated.

Strom has since had the Second Bankruptcy Court in Mexico dismiss the Concurso Mercantil on April 15 based on the premise that it was done without proper corporate authorisation. He has since filed to have Dolphin Discovery be jointly heard in the Delaware Bankruptcy Court. The first creditors meeting took place on May 9 with a committee of inspection to be setup shortly.

A US$100-million secured debt/bond issued by Dolphin Discovery is set to mature on April 8, 2026, with US16.24 million in accrued interest. World of Dolphins pledged its 79.99 per cent ownership stake or ordinary shares in Dolphin Cove as co-security for this debt. Thus, the ownership of Dolphin Cove might change if the noteholders decide to liquidate some of the assets across the group.

“The company’s operations continue unaffected, and it will maintain its independent operational status for the foreseeable future. However, if the process moves to the liquidation phase, the company has no control over what may happen to the ownership of its shares and any decision that may be taken thereafter,” stated Dolphin Cove’s audited notes.